Morgan Creek Digital Has $1 Million on Crypto Versus S&P 500
- The cryptocurrency market is nowhere close at the moment, but it has ten years to catch up.
Morgan Creek Digital, the cryptocurrency investment arm of North Carolina-based Morgan Creek Capital Management, wants to bet that the cryptocurrency market will be more valuable than the index of S&P 500 within ten years.
$1 million to any takers
Standard & Poor's 500 is a stock market index that tracks the value of 500 American companies. It has been in operation since 1923, and the fund has a current market capitalisation of around $2.6 trillion.
The cryptocurrency market is currently worth $107.4 billion according to coinmarketcap.com, and at the beginning of the year, it was worth $823.8 billion. On the other hand, Bitcoin’s market capitalisation was bigger than those of 97 percent of companies on the S&P 500 as of October, according to Ibinex.
The wager is of $1 million, to any takers. The company says that the money will be donated to charity.
Buffett Bet 2.0
American billionaire Warren Buffet once bet $1 million that the S&P 500 would beat a group of hedge funds selected by Protégé Partners by being more valuable than them by the end of 2017, a bet which he won. So, Morgan is calling this stunt 'Buffett Bet 2.0'.
The S&P 500 lost almost $755 BILLION today.
That is more money lost in a single day for public equity investors than all crypto investors combined this year. The math don’t lie! ??♂️ — Pomp ? (@APompliano) December 4, 2018
Morgan Creek was established in 2004 by Pompliano and the former chief investment officer of the University of North Carolina, Mark Yusko. It manages around $1.5 billion in investments, according to Forbes.
The cryptocurrency index began in August. It is only available for high net worth people and companies, with a minimum payment of $50,000. The fund tracks the total value of the nine of most valuable cryptocurrencies.
The fund excludes XRP, the token associated with Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term company Ripple with a market value of around $12 billion. This is because too large a proportion of the circulation is in the possession of Ripple, and because the definition of XRP is still in legal limbo in the US. Said Pompliano: "If there’s a central party that owns 30% or more of supply then we withhold those from the index because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network."
Morgan Creek Digital, the cryptocurrency investment arm of North Carolina-based Morgan Creek Capital Management, wants to bet that the cryptocurrency market will be more valuable than the index of S&P 500 within ten years.
$1 million to any takers
Standard & Poor's 500 is a stock market index that tracks the value of 500 American companies. It has been in operation since 1923, and the fund has a current market capitalisation of around $2.6 trillion.
The cryptocurrency market is currently worth $107.4 billion according to coinmarketcap.com, and at the beginning of the year, it was worth $823.8 billion. On the other hand, Bitcoin’s market capitalisation was bigger than those of 97 percent of companies on the S&P 500 as of October, according to Ibinex.
The wager is of $1 million, to any takers. The company says that the money will be donated to charity.
Buffett Bet 2.0
American billionaire Warren Buffet once bet $1 million that the S&P 500 would beat a group of hedge funds selected by Protégé Partners by being more valuable than them by the end of 2017, a bet which he won. So, Morgan is calling this stunt 'Buffett Bet 2.0'.
The S&P 500 lost almost $755 BILLION today.
That is more money lost in a single day for public equity investors than all crypto investors combined this year. The math don’t lie! ??♂️ — Pomp ? (@APompliano) December 4, 2018
Morgan Creek was established in 2004 by Pompliano and the former chief investment officer of the University of North Carolina, Mark Yusko. It manages around $1.5 billion in investments, according to Forbes.
The cryptocurrency index began in August. It is only available for high net worth people and companies, with a minimum payment of $50,000. The fund tracks the total value of the nine of most valuable cryptocurrencies.
The fund excludes XRP, the token associated with Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term company Ripple with a market value of around $12 billion. This is because too large a proportion of the circulation is in the possession of Ripple, and because the definition of XRP is still in legal limbo in the US. Said Pompliano: "If there’s a central party that owns 30% or more of supply then we withhold those from the index because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network."